Consumer Protection

Lord Wrigglesworth Excerpts

Monday 11th November 2013 Lords Chamber

[Viscount Younger of Leckie]

We agree that it is inappropriate for vulnerable people to pay high charges for accessing vital public services, and we are clear that a more consistent approach is needed. The Cabinet Office now runs a cross-departmental group to consider customer telephone lines. This group has made some good progress in drafting guidance on prefix number selection and establishing best practice. We will publish the guidance and have a standing remit to ensure that it is kept up to date.

[Lord Wrigglesworth (LD)]

My Lords, will my noble friend look at the plight of some bank customers with dormant accounts? Is he aware that a current account can be declared dormant after a year’s inactivity and a deposit account can be declared dormant after just three years? It can take six months for people to get their own money back in those circumstances. Will he ask the banks to notify customers more clearly and more readily that their accounts are to be made dormant and will he try to get the banks to speed up the repayment of people’s own money?

[Viscount Younger of Leckie]

The Dormant Bank and Building Societies Accounts Act was passed in November 2008 and included a requirement for the Government to undertake a review. The legislation set out the specific questions that the review should cover: for example, how many banks and building societies have transferred balances; how much money has been transferred and how promptly; and how effective the arrangements have been for meeting claims. HM Treasury is currently undertaking the review. The closing date was 21 October, and the report will be laid before Parliament by March 2014.